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Chapters 11 and 15 Test Review

Chapters 11 and 15 Test Review. Questions made by students. Chapter 11 -- Money. Questions made by students. Which was not once a form of currency?. A. Wampum B. Silver C. Salt D. Grass. What is a characteristic of money?. A. Portability B. Durability C. Divisibility

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Chapters 11 and 15 Test Review

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  1. Chapters 11 and 15 Test Review Questions made by students

  2. Chapter 11 -- Money Questions made by students

  3. Which was not once a form of currency? • A. Wampum • B. Silver • C. Salt • D. Grass

  4. What is a characteristic of money? • A. Portability • B. Durability • C. Divisibility • D. All of the above

  5. What is a barter economy? • A. A man named Barter that started an economy • B. Economy based on trading • C. Economy based on banking • D. Moneyless economy that relies on trading

  6. Which is NOT a characteristic of money? • A. Durability • B. Unlimited availability • C. Portability • D. Divisibility

  7. What is a medium of exchange? • A. Place where money is traded • B. Something accepted by everyone for goods and services • C. A type of currency • D. All of the above

  8. Gold certificates were issued in • A. 1886 • B. 1863 • C. 2002 • D. 600 B.C.

  9. What is an advantage of the gold and silver standards? • A. Value of gold is not fixed • B. Prevents the gov’t from printing too much money • C. Gold stock could not keep up with growth • D. Shoe laces

  10. There were about __ currencies before we had a national currency. • A. 8,000 • B. 9,000 • C. 10,000 • D. 11,000

  11. When was the Euro put into circulation? • A. 1992 • B. 2000 • C. 1999 • D. 2002

  12. An asset is • A. What the bank owes • B. What the bank owns • C. Money that can be loaned • D. Money that can’t be loaned

  13. When was the first known coin minted? • A. 500 B.C. • B. 600 B.C. • C. 900 B.C. • D. 800 B.C.

  14. Money is • A. Medium of exchange • B. Measure of value • C. Store of value • D. All of the above

  15. The characteristics of money include the following EXCEPT: • A. Durability • B. Acceptability • C. Portability • D. Divisibility

  16. The common denominator that can used to express worth • A. Measure of value • B. Store of value • C. Medium of exchange • D. Barter economy

  17. Which of the following is an advantage of the gold and silver standard? • A. Value of gold is not fixed • B. Gold stock could not keep up with the economy • C. Portability • D. People felt secure

  18. Currency is made up of • A. Bills • B. Coins • C. Leaves • D. Both A and B

  19. Which of the following is not a characteristic of money? • A. Limited availability • B. Divisibility • C. Portability • D. Transferability

  20. Which characteristic of money “makes change?” • A. Portability • B. Divisibility • C. Durability • D. Limited availability

  21. Liabilities are • A. The percent of money that can’t be loaned • B. What the bank owes • C. Money that can’t be loaned • D. A potatoe

  22. When was the Euro put into circulation? • A. 1992 • B. 2000 • C. 1999 • D. 2002

  23. What prevented wampum from being used more? • A. They broke easily • B. People painted them black to be considered more valuable • C. They were easily stolen • D. The supply ran short

  24. Chapter 15 – The Federal Reserve Questions made by students

  25. Who sets the discount rate? • A. RB • B. BoG • C. FOMC

  26. The Fed can expand or contract the money supply by influencing the cost of credit is called • A. Monetary policy • B. Prime rate • C. Discount rate • D. Easy money policy

  27. What is the required reserve? • A. Used to loan each other in the FFR • B. Amount of money the banks have to keep in the vault • C. Money that can be loaned • D. The interest rates banks charge each other for overnight loans

  28. What is the prime rate? • A. .25 • B. .5 • C. 3 • D. 3.25

  29. What is the policy the Fed uses to make the money supply grow? • A. Tight money policy • B. Hard money policy • C. Easy money policy • D. Loose money policy

  30. The window of last resort for banks. Banks do not like to use it. • A. Discount rate • B. Free rate • C. Window rate • D. Federal funds rate

  31. The Board of Governors has ? members. • A. 12 • B. 25 • C. 7 • D. 5

  32. The FFR is currently • A. .25 • B. .50 • C. 3.25 • D. 10

  33. What is a tight money policy used for? • A. To reduce inflation • B. Make people borrow more • C. Lower interest rates • D. Make the money supply grow

  34. Who can VOTE in the FOMC? • A. 7 members of the BoG, NY pres. and 4 rotating bank pres • B. 5 members of BoG, LA pres. and 3 rotating bank pres • C. 3 members of the BoG, NY pres. and 2 rotating bank pres • D. 8 members of the BoG, CA pres. and 4 rotating bank pres

  35. There are ___ RBs. • A. 5 • B. 7 • C. 12 • D. 25

  36. The Federal Reserve was created in • A. 1945 • B. 1860 • C. 1913 • D. 2002

  37. Which of the following is not part of the FED? • A. FOMC • B. Congress • C. BoG • D. Reserve Banks

  38. What is the money multiplier? • A. rr/1 • B. 3/rr • C. 1/er • D. 1/rr

  39. Writes regulation for the Federal Reserve? • A. FOMC • B. RB • C. BoG • D. none of the above

  40. How does the FED expand or contract the money supply? • A. by printing more or less money • B. by influencing the cost of credit • C. by borrowing money from China • D. it cannot influence the money supply

  41. The interest rate banks charge their most credit worthy members: • A. savings multiplier • B. prime rate • C. discount rate • D. federal funds rate

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